 | |
|---|---|
|
Opportunities in the financial system appear (and disappear) in seconds. It is very important, particularly in the legal field, to take advantage of such opportunities, especially when they go in a direction in accordance with the innovation times demanded by the markets in general. For that reason, for some years, both the authority and private institutions have worked hard to incorporate improvements, automation, eliminate true “speed bumps” that prevent speeding up and automating tasks which, in the long run, translate into costs for users that can often delay developments at the market level. Some years ago, the issuance of the legal framework that allowed creation of the Depósito Central de Valores (DCV) meant, among other innovations for the capital market, eliminating the existence of physical certificates representative of the different securities (dematerialization)and permitting the transfer of these through charges and electronic payments, consequently, eliminating endorsements and physical deliveries, among others. Today, as a result of the legal changes to the aforementioned legal framework (which regulates the operating of security depositories and custody companies), there is a new alternative for establishing guarantees on securities in custody with DCV. This modernization, which authorizes the creation of the so-called special pledges, represents an alternative that automates the processes of establishing and cancelling guarantees on securities, eliminating formalities and contemplating a fast and simple execution mechanism, thus, saving time and costs. This pledge method brings us closer to modern legislations that demand, in the context of security markets, efficient schemes for these types of processes. Simply, compared to financial guarantees with regards to establishing and cancelling schemes, which are based on the granting of public or private deeds, registrations and notices, before us there is a 100% electronic system, where the times to register and cancel guarantees on securities are carried out in seconds. In contrast, current systems take weeks to perform these operations. Moreover, notary procedures associated with the current systems (regarding the various types of pledges that our legislation contemplates) are eliminated. Without a doubt an innovation, especially for the legal profession.
What this means for the various market actors, especially for the legal areas, is that they are now able to execute or complete a guarantee within a period of hours, without a prior judicial process by only requiring electronic instructions for carrying out such operations in a public auction in the appropriate stock exchange. Undoubtedly this is also an element that is relevant to consider for your utilization. Today DCV maintains assets in custody totaling 9,269.2 million UF (Unidad de Fomento), which thanks to the change we have discussed can be used as collateral to guarantee all types of obligations. We are certain that this modernization will generate a significant change in the system of financial guarantees as well as for lawyers working in this industry, which will undoubtedly help the development of the Chilean capital market. For more information on the DCV visit www.dcv.cl and our LinkedIn DCV News |
